What is all this talk about so many Mortgage changes???? Why are people under the perception that you need more than 5% down on buying a house? The new mortgage rules had little to do with down payments in fact for the average home buyer the down payment rules have not changed at all.
When March 2012 ushered in a pile of new mortgage rules many people freaked out about qualifying. Yes there were changes that affected the ability to qualify for a mortgage, like the change from a 30 year max amortization to 25 years amortization, resulting in a higher mortgage payment.
As mortgage brokers we are always looking for ways to better educate and advise our clients. One of the things we noticed in talking with our clients was the lack of education about down payments. Many of our clients have been lead to believe that they will no longer qualify with the new rules in place. Reality is we help many clients who have been told they will not qualify or have helped them qualify for a higher mortgage. We take into consideration all of the vairables and options out there and because we work independantly we are able to negotiate the rates with over 40 different lenders.
Now to talk down payments, since that is what this blog is supposed to be about….. The truth is you CAN STILL BUY WITH 5% DOWN!! Yes this is true, and NO YOU DO NOT NEED TO BE A FIRST TIME HOME BUYER. This can be the 5th home you have purchased as an owner occupied unit and you can still put as little as 5% down. Yes, it is true, you will be paying a premium to a mortgage insurerer like CMHC, Genworth or Canada Guarantee however with rates as low as they are currently, it doesn’t affect the payment substancially. What the mortgage insurers do for you is allow you to put less than the lender requirement of 20% down by insuring the extra down payment funds, they do this by charging you a premium over the life of the mortgage…
So basically don’t count yourself out of the market, rates are the best they have ever been, which also helps with qualifying.
Harmony Mortgage Group is dedicated to keeping up with the latest regulations, policies and programs offered by the different lenders. Because of this we are able to offer our clients the best service and options that are out there on an ongoing basis. We do the negotiations and leg work for you.